USDCHF: Prefer to sell rallies

USDCHF: 0.9783

US$Chf fell to a to 7 week low on  the back of the Trump concerns on Wednesday and looks as though there could be more downside to come.

The daily momentum indicators are now pointing sharply lower, and are aligning with the short term charts although they are becoming oversold so some short term consolidation may be needed.  If we do head lower, then below the 0.9774 session low, there is then little support to be seen until we reach 0.9735 and 0.9705. A break of the rising trend support would then open the way to 0.9600/40 although that remains some way off.

On the topside, the initial resistance will come in at the previous low of 0.9813, above which could see a run back to 0.9850 although this seems unlikely today.

Trading from the short side with a SL placed above 0.9850 seems to be the plan.

24 Hour: Prefer to sell rallies   Medium Term: Mildly Bearish  
Resistance   Support  
0.9936 (50% of 1.0100/0.9774) 0.9774 Session low
0.9900 (38.2% of 1.0100/0.9774) 0.9735 (76.4% of 0.9549/1.0343)
0.9885 Minor 0.9705 Rising trend support
0.9850 (23.6% of 1.0100/0.9774) 0.9675 Minor
0.9815 Minor 0.9640 Minor


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